Tata Motors defends plans for $1,500 worth Nano car

Tata Motors safeguarded its method for producing the $1,500 Nano

Although Tata Motors avoided talking about the loss-making automobile’s future, after the corporation’s ousted chairman stated there were emotional factors for not closing down production.

Automaker provided the declaration to the stock market late Friday after an internal letter by ousted chairman Cyrus Mistry stated the expense of Nano’s production was constantly higher than its 100,000 rupees ($ 1,497) cost and the task had to be closed down if the business wished to remain profitable.

Mistry was sacked in a conference room coup recently with group head Ratan Tata taking control of the reins as interim chair of Tata Sons. A bitter public fight has since emerged between the two sides, raising potential of a legal fight.

The Nano’s concept got international interest for its cost effective prices however a modification in its production place and the understanding of a cheap car hurt production and sales, Tata Motors stated in the declaration.

Mistry’s leaked letter, was dealt to the Tata Sons directors on October 25, stated emotional factors were keeping Tata Motors far from closing down the Nano’s production.

Nano sales decreased more than three-fifths to 4,459 automobiles in the in the 6 months of the starting April 2016.

The automaker had crossed out some expenses connected with the Nano, it stated.

Tata Motors likewise stated financial investments in the Nano factory could be utilized for making other items which the business would concentrate on “growing and appealing sections of the traveler vehicle market.”

The automaker rejected Mistry’s allegation of aggressive accounting for product development costs and stated it followed basic norms which provide a reasonable and real picture of its monetary health.

1 Comment to “Tata Motors defends plans for $1,500 worth Nano car”

We own a Nano since 2010 though the first one booked was in 2009.
We live in a small township near Pondicherry. I have great difficulty getting into and coming out of cars that have seats close to the road. Nano was a natural choice. Small, compact, inexpensive and performing. I can easily move around within 2 to 3 hundred kilometer radius without any difficulty.
It would have been very good if Tata’s had used the compressed air technology that they bought at the cost of 27 million euros nearly 8 years ago from a small company in the south of france. The single most appealing thing for the car would have been its alternative power source. The technology is so good that the powerful car manufacturers did everything to can it. On simply the basis of this technology, Tata who has been always treated as the stepson by Governments in India as they do not pay for Elections etc, could have had one chance to fight for tax exemption on an entirely non-poluting car.
It pains to see that a truly people’s car–unlike the one that Sanjay Gandhi promised in 1967 for 6000 rupees–with great potential for the polluted indian cities, is facing a possible disapearance from the horizon sacrificed at the alter of Mamata Bannerjee’s political career and of the alter of final end to a painful rule of CPM.
We hope that by some divine intervention, TATA the real corporate sector company of India comes out of all misadventures of the recent past and Nano continues to toodle around the countryside with utter cuteness and élan!